The main reason for the acceleration of inflation in Russia in 2020 to 4.9% at the end of the year was the weakening of the national currency, the Deputy Minister of Economic Development Polina Kryuchkova commented on preliminary data from Rosstat. According to her, the effect of exchange rate pass-through will be exhausted in the first quarter of 2021.
“The main contribution to the acceleration of inflation in 2020 was made by the weakening of the exchange rate – by an estimate of about 1.5 percentage points,” said Ms. Kryuchkova, quoted by the press service of the ministry. “Additional pressure on the growth rate of consumer prices in 2020 was exerted by the situation in the agricultural markets, both Russian and world,” said the Deputy Minister (quoted by Interfax).
In 2020, inflation in Russia peaked since 2016. Then it was equal to 5.4%. Inflation in December, according to preliminary data, accelerated to 0.8%.
Recall that the Ministry of Industry and Trade, the Ministry of Agriculture, suppliers and retailers signed an agreement on December 16 to reduce prices for sugar and sunflower oil. Measures to contain food prices were taken after criticism of President Vladimir Putin. The government has also prepared a draft decree that will allow regulating the prices of socially important products when they rise in price by 10%.
Details – in the publication of “b” “Prices are lowering the threshold of growth.”